When demand is elastic, an increase in price will lead to an increase in total revenue
a. True
b. False
B
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Which action could the Fed use to decrease the money supply?
A) a tax increase B) a decrease in the discount rate C) an increase in the required reserve ratio D) an open market purchase
Do all consumers in a competitive market receive the same level of consumer surplus? Explain with an example
What will be an ideal response?
Reducing ________ unemployment may be beneficial for an economy, but reducing ________ unemployment to zero would definitely reduce the efficiency of the economy
A) structural and frictional; cyclical B) frictional and cyclical; structural C) the natural rate of; cyclical D) structural and cyclical; frictional
The theory that changes in the exchange rate reflect only changes in the price levels of two countries is called
a. the floating exchange rate theory b. the fixed exchange rate theory c. the flexible exchange rate theory d. purchasing power parity e. the managed exchange rate theory